Selling your property? But wondering why after months, your property has not sold? How do you go from “selling your property” to “sold your property”.
In June of 2018, there was already official chatter about most parts of SA squarely finding itself in a buyer’s market. That means that there are more properties on the market than there are buyers. When there is an imbalance between supply (homes on the market) and demand (more buyers than sellers) this imbalance favours one or the other (sellers or buyers).
But why is it that there are so many homes on the market at the moment? Well, I would go so far as to say that as sellers we have all become a little greedy? It is totally human nature to want to sell your home for as much as possible in the current economic climate. To de-risk, to downsize, to upsize, to move for the right schools, to emigrate, etc.
While 2018 has certainly been an interesting year, what with:
- 2018 is an election year and we have a new president.
- Land reform is still up in the air.
- Economic uncertainty is still pretty high?
- Emigration at an all-time high.
- Economic growth is low.
- Unemployment at an all-time high.
- Inflation is higher than our annual increase, and, and, and….
In an article published on June 2018, that’s over a year ago, what stood out very strongly for me was that only when we start to start to see an equalisation between supply and demand will sellers start to see higher offers and better sales prices. Even, more than a year later, we are beating the same drum.
In reality, the biggest challenge a residential seller faces is the length of time a property sits on the market. And there is a strong correlation between the length of time a property sits on the market and the asking price.
Bond registrations hit an all-time high in Aug 2019
What is interesting about the current SA property is that in August 2019 the banking sector granted more mortgages or bonds than they did 10 years ago. That’s right. The market is actually growing. Banks are lending far more and the lending criteria is reflective of a bigger appetite for risk by banks which will result in a growth in market share for the banking sector.
So there are buyers and there are far more buyers being granted a mortgage loan than 10 years ago!
What will a Bank’s lending appetite definitely not favour?
What’s interesting is that I also own a property that I am trying to sell on the West Rand. There is so much competition for a small unit in a complex in the Strubensvalley area that if your home is not priced correctly it simply does not attract views. Views, in this case, are online. You see I understand that the pool of potential buyers of property is small. I understand that I am competing with other properties in the suburb. I understand that buyers see more properties than I give them credit for and my home will need to offer the best value for money if I want to sell it.
What I also find interesting is that if as a seller push the asking price above what the property valuation report is telling you is a market-related price, then remember the banks will simply not grant a bond to the buyer. The banks will simply not approve a bond on a property where the bond size is greater than the value of the property.
So there you have it. If your asking price is higher than the market-related valuation, your buyer will possibly not get a bond.
A good indication that your asking price is too high is that:
- Your property has been on the market for between 4 – 18 months or more.
- You’ve received offers that are way lower than your asking price which you rejected.
- Your Agent(s) initially advised that your asking price was too high. But you went ahead and signed the mandate anyway.
- The property valuation you received all those months ago was probably correct.
- You opted for an open mandate.
Anyone of the abovementioned points rings a bell?
Well, where did that all get you?
- Your home is now over-exposed and frankly, stale.
- Your asking price was too high, to begin with, and other homes that boasted a more market-related price have sold.
- An open mandate allowing different boards onto your pavement but where no 1 agent really stood out. You see an open mandate does not ensure a fully committed agent. The feedback you have received or the actual buyers that come to your property have decreased and there seems to be no real interest in your property.
- The property valuation was indeed correct and you know it. But, remember “we are not in a hurry to sell”. That just does not make sense. If you are selling why labour the process and set yourself and your agent(s) up for failure. Believe it or not, that’s just what is happening. The process to sell your property has failed.
How do you fix this?
The only way to fix this is to start again. I mean it. Start again. Start fresh.
Consider the following:
- Ditch the pre-conceived notion that you know better than the statistically valid and highly accurate property valuation. It took some very clever people years to come up with a meaningful way to value properties across SA. The data that you see on your valuation is correct.
- You should follow the advice of your agent when you determine the asking price.
- Please consider a sole mandate. Let 1 agent get completely invested in the sale of your property.
- Make sure that your home looks absolutely fantastic before you start the process to put your property on the market again. If you need to make repairs or spruce things up, then, by all means, take your property off the market for a little while and start again.
- But, know that if you drop your asking price now and your property has been on the market for months or a year (+) that you will probably fetch less than the first few offers you may have received.
How can we help you?
When you have swallowed that bitter pill then go online and submit your details online. You will receive, within minutes, calls from up to 3 of the most prominent agency brands in your area, for free. Click here to view a video about or offering.
So, be open-minded. Listen to the advice from your property professionals because they, believe it or not, are incentivised to sell your property. They are also very experienced. Remember your agent also has a vested interest that goes with “selling your property quickly and for the best possible price.”
Get up to 3 agents contacting you so you have more options:
- Work with the best and most prominent agency brands in your suburb.
- Get more than 1 property valuation which will give you peace of mind.
- Review more than one set of terms. Settle for the terms that work for you. In other words the commission.
- Consider, very very carefully the type of mandate that you are willing to consider the 2nd time round. As the seller, you want an agent as invested as possible with the sale of your property. Ensure quick turnarounds on all fronts. And, remember you are paying for your agent to be honest with you because honesty is the best policy. You also want superb feedback on a regular basis.
We understand all too well how this works. When your home is priced right it will sell quickly. Let us help you connect to 3 of the best. We will help you get your property sold quickly and for the best possible price.
This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)